Evening Star Newspaper, June 11, 1926, Page 1

WEATHER. (U. S. Weather Bureau F Fair tonight; cloudy: possibly much 84, 5 yesterday: 6 am. today Full report tomorrow partly thunderstorms; hange in temperature. Highest, lowest, ‘orecaat.) not 66, at Closing N. Y. Stocks and Bonds, Page 30 h WITH SUNDAY MORNING EDITION ¢ Foening - Sfar, service. The only evening paper in Washington with the Associated Press news Yesterday’s Circulation, 99,078 No. 29,991. Entered as second class matter post office, Washington, D.oC WASHINGTON, D. C, FRIDAY, JUNE 11, 1926—FIFTY PAGES. (®) Means Associated Pre: TWO CENTS. FENNING IS ACCUSED, OTHER OFFICIALS HIT, IN REPORT OF PROBE Criminal Law Held Violated in Spirit if Not in Fact. PROFIT IN DEALS WITH D. C. SCORED Rudolph and Graham Named by Gibson in Statement. Voicing a strong criticism of Com- missioner Frederick A. Fenning for his work as guardian of insane per- sons; declaring that the conduct of certain other unnamed officials of the District government is contrary to the spirit, if not the letter, of the criminal code, and outlining a long list of conditions found in the District which should be remedied by legis- lation and further study by a joint commiittee of the House and Senate, the subcommittee of the House Dis- trict committee headed by Repre- sentative Gibson of Vermont yester- day presented its report to the full committee. The report is the result of two months of investigation, and was inrmediately approved by the District commiittee. While the report does not specifical- Iy recommend the removal of Commis sioner Frederick A. Fenning from of- fice, Representative Gibson, who laid the report before the full committee, declared that such a recommendation was deliberately avoided out of cour- tesy to the President, as such action is entirely within the province of the President. he subcommittee was, however, unanimous in its conclusion that a series of practices by Mr. Fenning of- fensive to the subcommittee as d veloped during the two months’ inve: tigation and specifically mentioned in the report with “consequent loss of confidence in him on the part of ths public, makes his continuance in of- fice incompatible with the best inter- ests of the District.” Other Officials Accused. The report further “certain high officials of the District of Columbia are sharing in the earn- ings and profits of firms and corpora- tions doing business with the Dis- trict in furnishing materials and supplies. Tt is the opinion of the subcommittee that the practice is contrary to the spirit, if not the let- ter, of section 41 of the criminal code of the United States,” which is quoted. Conditions existing in the school | board as disclosed during the hear- ings are vigorously assailed. The report charges that “the present school board is under the control of one man, connected up through finan- clal, business and social relations with a small corterie of ritizens who appear to be in strategic positions in coutrol of the government affair: of the District.” The report empha- sizes that “the only purpose of the schools of the District should be to educate the children. The schools should not be made the medium of politics or used to encourage a de- gire for personal or financial gain.” While the report does not name Commissioner Rudolph and Edwin C. Graham. president of the Board of Education, Representative Gibson of | Vermont told newspaper men that | they were the ones the subcommittee | had in mind in connection with the charges. declares that Joint Survey Is Asked. Tt is emphasized that the Gibson subcommittee, consisting of Repre- mentatives Gibson, Vermont; Flouston, Delaware, and Bowman, West Vir- ginia, all Republicans, and Rlanton, Texas, and Gilhert, Kentucky. hoth Democrats, “endeavored to discover conditions that appeared to require remedial legislation with the sole view of improving the government of the Capital Cits. We have followed a definite policy of making our work constructive and not destructive,” the report states. The review of the testimony leads to a recommendation for “the adop. tion of a concurrent resolution pro- | viding for a joint committee of the | Senate and House to make a com- | plete survey of the government of the | District of Columbia and report such | recommendations as are deemed ad-| visable, both as to changes that will improve conditions in the I relieve the Congress of ma of legislation relative thereto. Among the particular recommenda- | tions made in the report are: St. Elizabeth’s Hospital for the In- sane—"There should be a full investi- gation made by the Controller Gen- eral of financial conditions and by a joint congressional committee as to the management and practices theve.” " Court Building Recommended. Police Court—"We recommend the | early erection of such a building as will answer the requirements of ‘Washington 20 years hence.” Occoquan workhouse and Lorton reformatory—'"‘These Institutions rep- resent an advanced idea in the han- dling of prisoners, and we recommend the scheme employed as a model for other sections of the country.” Referring to the subcommittee’s find- ing several prisoners in chains at Occoquan who had attempted to es- cape, the report vecommends: “This practice should not be permitted in this enlightened age. It is unneces- sary and wholly at variance with all ideas of prison reform and the pur- pose of these institutions.” Passage of a pending bill “providing that an | escape or an attempt to escape be | made a separate penal offense” is urged. 1 Sale of space in public streets—"A | provision of the new traffic bill pass- ed by the House sought to cure the evil complained of. We think it should be retained. If it is not re- tained, then early legislation is netes- sary to meet the situation.” Schools and school building: “The wohool problem” should be thoroughly surveyed. “Until the survey of the controller general's office (in regard | by the defendant, Frederick i this investigation that every one of | with Rankin Declares Commissioner Is Impeachable. ACCEPTANCE OF BOND FEES IS ATTACKED Makes Him a Subject for Prosecution, Brief Contends. Setting forth that Commissioner Frederick A. Fenning is subject to impeachment by Congress or to re- moval by the President, and that he is further subject to criminal prose- cution for embezzlement by accept- ing commissions on the bond pre- miums paid by the wards’ estates, the brief of Representative Rankin, Democrat, Mississippi, counsel for the Government, was filed with the House judiciary committee last night. Upon receipt tomorrow of the brief of Frank J. Hogan, chief coun- sel for Mr. Fenning before the com- mittee’s investigation of the Blanton impeachment charges, the matter will be disposed of early in the week. Mr. Rankin's brief “also declares| | that Commissioner Fenning is subject to criminal prosecution for violation | of Section 5498 of the Revised Stat-| utes, which prohibits Federal officials | from prosecuting claims against the| Government; for participation with Commissioner Cuno H. Rudolph in the | violation of Section 41 of the United States Penal Code, which prohibits of- ficers of the United States holding pri- vate business interests fr@m transact- ing business with such interests, and for violation of the World War vet erans’ act regulating the practice of atorneys and the fees to be charged in collecting compensation from the vet- ! erans of the World War. Fenning Held Federal Officer. { Mr. Fenning, the brief holds, is a | Federal and not a municipal officer. Mr. Rankin prefaced his brief, | which was printed today in the Con- gressional Record, with this statement: “YWith the short time T had in which | to prepare and with the opposition of certain members of Congress, who i seem to be more interested in sup- pressing the facts with reference to | these outrages than they are in getting | relief for our disabled heroes, I have ! done the very best 1 could. I submit | this brief on the part of the Govern- | ment in the Interest of common jus- ! tice and in behalf of those men who are no longer able to plead for them- selves.” Covering seven and one-half closely | printed pages in the Appendix of the | Record, the document, after citing the | charges against the Commissioner, | concludes: “Proceedings should be started at once to have every case of a World | War veteran for whom Fenning is | guardian carefully audited and suit | should be filed to recover back to these | boys and to their estates the money | that has been wrongfully taken from | them. These are the same boys who offered their lives in defense of their country during the dark days of the World War and they are just as dear in the hearts of the American people as the Unknown Soldler who sleeps on the heights of Arlington. Appeals to Committee. “So I appeal to you not only as members of the committee on the :diciary but as members of Congress | at we do not neglect our duties | vard these unfortunate boys who | receiving the unjust treatment set out in this brief, as borne out by the | record, and who are still_in the clutches of Frederick A. Fenning, without any chance of relief except | through the Congress of the United States. “Those members of Congress who have diligently attempted to block at every turn this investigation and pro- tect Mr. Fenning in these practices have shown that they are more in sympathy with him than they are with our disabled veterans, and will doubt- less continue to rise in his defense in the House and elsewhere; but I sub- mit that if the American people knew all the facts they would sweep from public life every man in an official po- sition who attempts to stand in the ay of a thorough investigation or pologizes for the heartl acts of derick A. Fenning as set out and hown by the testimony taken by three committees of the House.” Brief in Part. Mr. Rankin's brief, low Of the 700 or more cases handled A. Fen- ning, of guardianships of insane per- sons alons, not more than 25 of them have even been partially examined by the committee, and of the 25 filed with the committee counsel has had no opportunity to go through and point out the irregularities thereln. “It is of supreme importance to in part, fol- the 700 cases handled by Mr. Fen- ning should be examined and care fully audited by the auditor of the Supreme Court of the District of Co- lumbia and by some Representative of Congress. This is espectally true reference to the insane World War veterans, for whom Commis- sloner Fenning is guardian, for the reason that the few cases that have been_examined have been filled with fraud and imposition on these help- less wards of the Government who offered their lives and gave their health in the defense of their country in time of war. * * ¢ “It is shown by the record of the auditor of the District of Columbia, and by the testimony introduced, that Fenning appropriated to his own use about_$5,000 of the money of the in- sane World. War veterans alone for whom he is guardian, by taking 25 per cent commission on the bond pre- miums, in violation of law. This not only constitutes fraud and miscon- duct on the part of a fiduciary, but it constitutes embezzlement under section 841 of the code of the District of Columbia, for which I submit that the Department of Justice should bel instructed to institute criminal pro- ceedings at once. * * * to the erection of school bulldings) is ““That Mr. Fenning, after his ap- pointment by the court as guardian {Continued on Page 4, Column 1) (Continued on Page 3, jolumn 1) PRESIDENT SEEKS T0 AID FARMERS Constructive Proposal to Solve Problems Will Win His Support. BY DAVID LAWRENCE. President Coolidge has determined that if there is a chance for a con- | structive proposal for farm relief to be adopted at this session of Congress he will give it every encouragement and support. The visit of Representatives Hau- gen and Dickinson of Iowa and Rep- resentative Anthony of Kansas to the office of Secretary Mellon is the first step in a get-together program. The meeting was arranged through the good offices of Representative Menges of the Pennsylvania delegation. The purpose of it was to exchange views on the economic phases of the vari- ous suggestions that have been made for farm relief. Mr. Mellon, on his side. was anxious to get first hand the views of those who are advocating an equalization fee and “subsidy program. The Sec- retary listened carefully to the argu- ments presented and said he would study the problem further and per- ‘haps make some suggestions. Doubts Value to Farmers. The President has been examining many letters and memoranda on the subject—in fact, has been giving his time in recent weeks mostly to farm relief proposals. He is definitely con- vinced that the proposals thus far made would not benefit the farmer to the extent that is claimed. Under the various pleces of legislation proposed he feels that the surplus will pass out of the hands of the farmer when the time comes for the exporting price to be fixed. In other words, assum- ing that the entire surplus is han- dled by an export corporation, the question is raised that the farmer will have sold his grains and will not have any further control over the price that will be obtained in the ex- port market. Mr. Mellon's interest in the farm problem is from the financial stand- point. He wishes to satisfy himself as to the extent to which the Gov- ernment funds would have to be used in financing export operations. It can be said authoritatively, however, that there is no likelthood that the prin- ciples hitherto advocated by the West- ern Republicans who have been champloning the McNary-Haugen plan would be accepted by the ad- ministration. It is, on the other hand, very probable that analysis of the scheme will be forthcoming from the administration very soon. It will be recalled that Vice President Dawes has been in consultation recently with advocates of farm relief legisla- tion, and that he has decided that a plan could be developed which would be economically sound. Would Give Reasons. Mr. Dawes, who was at the head of a big banking institution before he came to Washington, won for him- self considerable prestige as an econo- mist in connection with the settle- ment of the German reparation prob- lem. News of his leaning toward the plans of the Western Republicans has created much talk in administra- tion circles, where it is felt that some- thing ought to be said as to the merits of the various schemes pro- posed, and that Secretary Mellon is the man to say it, because of the rep- utation he has with the country at large as a sound adviser on the fiscal policies of the Government, Whether the efforts to reach a compromise will succeed is not so important at the moment to the ad- ministration as the manifestation of a desire to go to the heart of the problem. The administration, up to this time has kept silent, but will not hesitate hereafter to assume the offensive. The speech made by Sena- tor Fess of Ohio has rather strength- ened the view that if the administra- tion leaders are not going to permit the McNary-Haugen plan to pass they should explain their reason and offer a constructive alternative, The creation of a Federal farm board to co-ordinate the work of co- operative farm legislation, which, in turn, shall have the sole responsi- bility of the handling of the surplus problem, is the line of thought on which the administration is working. (Copyright. 1926.) — 100 Drowned in China. LONDON, June 11 (#).—The Hong- kong correspondent of the Daily Ex- press reports that more than 100 per- sons have been drowned and $4,000,000 worth of property destroyed by floods at Canton. The raflways in that region are ai a andstill, Students, Blind Since Childhood, To Get Degrees By the Associated Press. URBANA, IIL, June 11..-Two students, blind since childhood. will be among more than 1,900 who will receive degrees next week at the University of Illinois. The blind students are Leonard of Lake Villa, IlL., and C. A. Innis of Bellflower, Ill. Both have pursued their college courses by having their lessons read to them and by taking only mental notes of lectures. Both use type- writers faultlessly. Leonard will obtain a master’'s degree, having completed post graduate study of political science with the highest possible grading. He will study law. Innis will re. ceive a baccalaureate diploma. He plans to pursue graduate work in education with a view to teaching. NENBER F HOLSE FINED Y WOMAN John J. Gorman, lllinois, Ac- cused of Contempt in Trial at Hyattsville. E. T Representative John J. Gorman of Illinois and a party of friends were arrested at Hyattsville, Md., while returning from Baltimore rly this morning, and when the short trial had been concluded Mr. Gorman found himself fined $10 either for contempt of court or disorderly con- duct, and his friend, Capt. Howard Hutter, was $100 poorer to satisfy a charge of driving his automobile while drunk. In the matter of the charge on which Mr. Gorman was fined, the Hyattsville authorities and the rep- resentative disagree as thoroughly as | they did earlier this morning before | Justice of the Peace Retta Morris, the newly appointed woman magistrate. Mr. Gorman declares he was fined for contempt of court because he pre- sumed to testify for Capt. Hutter. The Hyattsville authorities say the charge was disorderly conduct. According to Mr. Gorman, he, Capt. Hutter, Mrs. Hutter, a Miss Brown and Mrs. Richard L. Ryan, the latter a niece of Mr. Gorman's wife, were proceeding slowly through Hyatts- ville about 1 o'clock this morning when they were stopped by an officer. The policeman informed Capt. Hutter, who was driving, that he was arrest- ed for speeding und took the entire party to Mrs. Morris’ court. Acted as Witness. Mr. Gorman said he requested Mrs. | Morris to permit him to represent the defendant friend as his attorney, but that she refused to permit it. As al witness, however, the member from Illinois declares he succeeded in prov- ing that the policeman could not gauge Capt. Hutter's speed because the officer was on foot. This charge, together with a charge of reckless driving, was dismissed. , “Then, however,” Mr. Gorman con- tinued, “Mrs. Morris peremptorily charged Capt. Hutter with driving while drunk. I insisted that a physi: clan be called and Dr. W. B. Baker, whom none of us had ever seen before, was summoned. He made affidavit that the prisoner was not drunk, but Mrs. Morris insisted that he was and fined him $100 in the face of the evidence. “Having done that, she declared that I was in contempt of court and fined me $10. I immediately filed notice of appeal from both decisions and I shall carry the two cases to a higher court, where I feel confident common justice will result in the two decisions being reversed. The entire affair was a wanton abuse of power and justice, and I intend to go far to have this wrong corrected.” Capt. and Mrs. Hutter live in Wash- ington at the Argonne, and Mr. Gor- man is stopping temporarily at the Annapolis. Police Chief’s Story. The story of Chief of Police Robert Gallagher of Hyattsville, who assist- ed Policeman Robert Foninter in making the arrests, does not alto- gether square with Mr. Gorman's viewpoint. The police chief declared he and Foninter had only intended warning the motorists and letting them continue their journey, but wha‘n Mr. Gorman called the officers ‘“a couple of hick cops,” Gallagher as- serted, they decided to “take them in. Policeman Zoninter was _stationed " (Continued %§ Page 2, Column §, |ing WONAN CRUSHDERS MARCHON LONDON Peace-Seeking Hosts of All| Classes Joining in Trek, | Arriving June 19. | By the Associated Press. LONDON, June 11.—-Woman peace crusaders are moving upon London from every part of the British Isles. Countesses are trudging along country roads with charwomen. Bishops are welcoming the pilgrims in their ca-| thedrals and wishing them godspeed. Noncomformist chapels and establish- ed churches alike are being !hrou‘n' open to the footsore travelers, who, read their peace resolutions in every town and add the names of the places to their banners to show their itin- erary. The crusaders will enter London June 19 and will gather in Hyde Park. Woman speakers from 20 platforms will demand peace. Saying they are tired of the talk of politicians and diplomatists, British | women of all classes have united in| this anti-war demonstration. The idea | started last January at a meeting of | the Women's International League for Peace and Freedom, at Genevi. Un- der the leadership of Mrs. Pethick Lawrence, scores of women's organi- zatlons have been enlisted in the cru- sade, which soon will sweep into Lon don. Friends Society Aids. Mrs. Lawrence is participating per- sonally in the trek. She flies to va rious parts of England when trains are not fast enough, joins with the marchers, assists in speechmaking and then rushes off to some other detach- ment of her army of peace. Men are lending hearty support to the move- ment, especially members of the League of Nations Union and of the Friends Society. Lord Parmoor, judicial member of the privy council, will be among the speakers at Hyde Park during the final demonstration. Maud Royden, famous woman pre: Ellen Wilkin- son, member of Parliament, and M, garet Bondfield and Mrs. Wintring- ham, both former mewmbers of Parlia- ment, also will speak. The following resolution, which is being read in every town in Great Britain, will be introduced at the Hyde Park meet- and adopted at the concluding meeting: “We members and supporters of peace makers' pilgrimage, believing law should take the place of war in the settlement of international dis. putes, urge His Majesty's government to agree to settle ail such disputes by conciliation or arbitration, and by taking the lead in the proposed dis- armament conference of the League of Nations to show Great Britain does not intend to appeal to force.” Harry Lauder Marches. Women's organizations of all sorts are participating in the pilgrimage. Many working women, who cannot long leave their homes, join the pil- grims, marching a few miles with | them with a blue armlet of peace upon their sleeve: Sir Harry Lauder joined the pil- | grimage for a time. Sybil Thorndike | and many other prominent actresses are taking part in meetings wherever they have the opportunity. Lady FAstor is one of the prominent sup- porters of the pilgrimage, but her parliamentary duties have prevented her from joining the marchers. Countess Cecll, Lady Balfour of Burleigh, Lady Violet Bonham Carter, who is a daughter of Lord Oxford, and Dame Millicent Fawcett, the vet- eran suffrage worker, are actively sup- porting the movement. The Bishop of London has granted the use of Fulham Palace grounds to the crusaders for a demonstration June 19. Dr. F. W. Nbrwood, minis- ter of City Temple, the largest free church in London, has taken such interest in the movement that his six months’ vacation will be devoted en- tirely to peace addresses throughout England. SOSaae— $12,000 STOLEN IN MAIL. MEMPHIS, Tenn., June 11 (#).—A registered package containing $12,000 | in currency, shipped last Friday by the local branch of the Federal Re- serve Bank of St. Louis to a member bank in Belzoni, Miss., was stolen in *vansit, it was learned here last night. The package was received in Bel- zoni Saturday, but when bank offi- cials opened it they fouhd. not cur- rency, but neatly arranged piles of newspapers, which had been cut to fit the package and substituted for the cwrrena¥ BRITAIN PROTEST SHARPLY TOSOVIE OVER STRIKE FUND Sending of Government Money Declared Unjustifi- able Interference. OFFICIAL MOSCOW PART IN GIFT HELD PROVE London Convinced Cash Was In- tended to Bring About Revolu- tion, Russia Is Told. By the Associated Press. LONDON, June 11.—The British government has sent a sharp note to Moscow protesting against the en- deavors of the Soviet to send money to Great Britain during the recent general strike. The note sets forth the belief that this money was in- tended to foster & movement to bring about a change of government in Great Britan. The note declares that definite proof now is in the hands of the British government that a share of the money offered the Trades Union Con- gress from Moscow during the gen- eral strike came from the Soviet gov- ernment itself. This action, the note states, is regarded as unjustifiable in- terference in the internal affairs of the country and a violation of the Anglo-Russian trade agreement. A second note, dealing with the money the Soviet is sending to the British Miners' Federation, is being considered by the cabinet and will probably be forwarded to Moscow soon. The British government in this case also contends that part of the money Is contributed by the Soviet government and not, as claimed, by the Russian miners. At the height of Great Britain's nineday general strike, called in sup- port of the miners, a check for 4,000,- 000 rubles, or about §2,000,000, was reported to have been received from Moscow by the British Trades Unfon Congress. The money purportedly had been raised by Russian laborers as a mark of their solidarity with the British workers. The Trades Union Congress declined to accept the mox and returned it to the All-Russian Contral Council of Trades Unions in | Moscow. The money was then offered by the Russians to the British miners, who continued out after the general strike was called off, and it was accepted A. J. Cook, the miners’ secretary, in referring to the contribution, was quoted as_exclaiming, “Thank God | for Russia!"” Lord Birkenhead, speaking in Lon- | don on Wednesday of this week, de- | clared that the money was not con- tributed by the Russian workers, but | by the Moscow government. which, he charged, sought to foment revolu- tion in Great Britain and to “filch as | much as possible of the British coal trade in the interest of the Russian | | coal trade.” DEBT PUTS CLOUDS ON BRIAND HORIZON French Premier to Be Inter- pellated on Ratification of Accord With U. S. By the Associated Press PARIS, June 11.—The political firm- ament again is becoming cloudy. On the one hand the apostle of a ministry of all talents, Henri Franklin Bouillon, who has been and still is trying to convert the reluctant Premier Briand to his viewpoints in regard to ratifi- cation of the American debt agree- ment, announces his intention to pre- cipitate the question by interpellating the government on its general policy at an early date, thereby provoking lengthy debate. On the other hand, many deputies, principally members of the cartel, are furious at the rejection of a salary increase for deputies, for which they biame the government. Criticism of the government also is coming from Andre Tardieu of the foreign affairs committee, who is be- ginning to form a group in the cham ber. M. Tardieu has started a _vigo) ous campaign in the Journal. He de- clares that thus far the government has done nothing but tinker with the financial problem, Instead of acting boldly. The motion made by the Socialsts in the Chamber yesterday against pure and simple ratification of the Washington debt settlement appears to have attracted the attention of the opposition which exists in the various groups and which is almost as much technical as political. The Soclalists desire the payments to the United States made in francs, the money to remain in France until there is actual stabilization of French currency. Many of the Socalsts hold that carrying out the agreement as it now | stands would subject the country pe- riodically to a money crisis and only serve to breed quarrels. M. Bereneger, the French Ambassa- dor to the United States, is continuing a quet but an active campaign for ratification of the debt agreement. Both Adversaries Seriously Slashed InDuel With Sabers By the Associated Press. MILAN, Italy, June 11.—A furl- ous saber duel in & lonely spot near Milan today ended with both of the adversaries seriously wounded. The duelists were Guiseppe Bru- nati, dinser of the weekly news- paper Ssbaudo, and Umberto Frac- chia, director of Literary Fair, an- other weekly. Their meeting came after a heated exchange of political opinion in the columns of their papers. The first two assaults were fought without bloodshed, but at the third Brunati was hacked across the right shoulder, while simultaneou his saber slashed Fracchia's nose and right cheek. While doctors endeavored to stop the flow of blood, both men de- clared that if they lived the affair was not yet finished. TACNA PLEBISEITE BREAKUP FORESEEN L} Gen. Lassiter’s Resolution Declares Chile Is Blocking Fair Dealing. By the Associated Press. ARICA, Chile, June 11-—An_ early break-up of the Tacna-Arica plebiscite activities here is foreseen in conse- quence of the resolution introduced by Gen. Lassiter, charging Chile with blocking a fair plebiscite by failure to rry out her obligations under Presi- dent Coolidge’s arbitral award. If the resolution is carried at the next meeting of the plebiscitary com- mission, it is pointed out, there will be little further for the commission to do except wind up its proceeding Then, too, if the direct negotiations for settlement of the problem now pro- ceeding in Washington lead to con- crete results before the next meeting | »f the commission, that body will cease to function. BRUNDY TESTIFIES HE LENT $300.000 T0 PEPPER FUND Manufacturer Says Money Was Spent on Campaian in Eastern Counties. CONTRIBUTED OTHER SUMS, HE DECLARES Denies He Knew Just Where Money Was Coming From to Pay Him Back. | BY G. GOULD LINCOLN. Delving further into the expendi tures in the recent Republican pri maries in Pennsylvania, the Senate investigating committee today brought forth the following facts: That Joseph R. Grundy of Bristol, Pa., president of the Pennsylvania Manufacturers’ Assoclation, had per- sonally advanced $300,000 to meet ex penditures in the eastern part of Pennsylvania for the Pepper Fisher Smith-Woodward coalition ticket. That Mr. Grundy had also indorsed a note along with W. H. Folwell treasurer of the Republican Citizens Campaign Committee, of which M Grundy was the director and the head at the Corn Exchange Bank in Phi adelphia, for $90,000. Personal Contribution of $18,000. Mr. Grundy's personal contribution |to_the primary campaign fund, he said, was $18,000, which was not in cluded in the amounts above given Senator Pepper, who appeared on the stand before Mr. Grundy, |the committee that he thought expenditures by his own camp mmittee would run from $11 i He said he underst deficit of about the 50 there $20,000 o Grundy was sely questioned or Reed, Democrat, of Mis | sour, chairman of the Senate commit [y s Plebiscite Held Impossible. Gen. Lassiter's resolution, intro duced as a substitute for a Chilean motion demanding that the date for the plebiscite be fixed, is understood to declare that a plebiscite is impossible while guarantees are lacking for th safety of Peruvian voters. It is based on investigations con- ducted throughout the disputed terri- to since last August by American ervers. The observers reported that the | asked Senator Reed, conditions complained of by Gen. Pershing before his departure for the | stand with | United States are not improving, but s instead are growing worse, upon Peruvians increasing and forci- ble deportations continuing. Some of the American observers place re sponsibility for these occurrences rectly upon the Chilean off the territory. Violence Ts Growing. During the last three weeks there has been an extraordinary recrudes- | cence of anti-Peruvian violence, rang- ing from the stoning of Peruvian houses to murder. Yesterday a Pe- ruv selling the local Peruvian newspaper Voz Del Sur was stabbed in the back in full daylight at Tacna. The Chilean delegation is still awaiting instructions from the San- tiago government as to its future policy in view of the Lassiter reso- lution. It is reported that the Chilean gov- ernment has accepted the resignation of Senor Gomez Carrenos as in- tendente of Tacu: PRESIDENT MAY ACT. Entire Question Likely to Revert to Him as Arbitrator. It is thought likely that the Tacna. Arica_dispute between Chile and Peru will_be brought back to President Coolidge. the arbitrator, as a result of the action at Arica vesterday of Gen. Lassiter, American chairman of the plebiscitary commission, in pre- senting a resolution declaring a plebi- scite impossible. In the resolution, it was understood, Gen. Lassiter said a plebiscite could not be held because of Chile's failure, | as administrator of the two provinces, to provide guarantees for Peruvian voters. While tacitly admitting the accu racy of the report from Arfca, State Department officials declined to_com ment, pointing out that since Pres dent Coolidge, as arbitrator, is the court of last appeal on any action | taken by a majority of the commis- sfon, complete silence should be ob- served <o that the President's de- cision, if called for, would not embarrassed. ‘Will Not Publish Reports. The Washington Government not intend to make public Gen. .S siter's reports in regard to his action unless he requests it, and neither American, Chilean nor Peruvian offi- clals here would disclose the exact extent to which Lassiter's resolution | is an indictment of Chilean good faith in the exercise of her power as tem- porary administrator of the territory. Reports in Arica that diplomatic negotlations for settlement of the controversy had failed were not understood here in_view of the fact that Secretary Kellogg is awaiting word from the two Ambassadors as to when they will be ready for another conference with him. The sessions were adjourned recently when the Peruvian Ambassador required time to communicate with his government before /replying to counter proposals presented by the Chilean Ambassador. Champagne for Med Plentiful in U. S., By the Associated Press. HAVRE, France, June 11.—Cham- pagne can be obtained anywhere in the United States if enough money 1s planked down, said Count Chandon- Moet and M. Henri Moet, represent- atives of the famous champagne fam- ily, on their return from a trip to America. “Of course, not 5o much champagne is being exported to America as formerly,” they said, “but a large there just the e know nor care ! icine or Bathing Say French Makers “We get orders to ship so many cases from Havre and some one else does the rest. Our brand is supposed to be sold in the United States only by druggists for medicinal purposes and it is immaterial to us whether or not it is used for bathing.” Henri Moet expressed the convic- tion that prohibition will not be a permanent institution in the United States. Radio Programs—Page 2. be| | tee, regarding his contribution ad {vances to the campaign fund. Mr | Grundy told the committee that the |first advance he had made was about {April 4. a matter of about $:.000 or {88,000, and that the last advance was I made about a week ago. As a matter | or fact, he said, bills are still coming in to be paid | "Mr. Grundy said that he would not {want to hazard a guess as to what | the commitments were that stiil must {be met. “When you advanced the $300,000," “was there any that anybody would u if that amount was | understanding ¥ not paid back’ ! pected Contributic | “None undy. How did you expect to get it haek?” jasked Senator Reed | The witness replied that he thought | there would be contributions to the { campaign fund. “You ju ve of Pennsylvania 1o Says Mr in the world,” replied aith in the commented Sen.itor Reed. “You must have something te iyond a vague hope. Don't you <now W] cou expect to get it from”’ peor f men in Penn Iy contribute to [ “Is there a group | sylvania who gener these funds | “Yes” said the witness have contributed in tne pas Mr. Grundy testified that all of the money that he advanced had been used in 35 counties in the eastern pari of Pennsylvania. This is distinet from the §310.000 which W. L. Mellon. nephew of Secretary Melion of the Treasury Department, last night testi fled had been expended in the western part of the State for the Pepper { Fisher - Smith - Woodward coalition | ticket. Mr. Grundy made it clear to the | committee that funds probably had been raised by the various county or ganizations supporting the coalition | ticket. These organizations, he s | had a perfect right to raise and ex | pend funds and he hoped they had | done so | Org: | |1 w testimon “They izations Combined in Race. developed from the that there were several organizations co-operating to carry the campaign for the coalition ticket in the eastern part of Penn- sylvania, one of them being the Re- | publican citizens’ campaign commit | tee. headed by Mr. Grundy other the Pepper-Fisher-Smith-Wood- 4 ign committee, headed Cyrus E. Woods, former Ambas sador to Japan, and a_third, the Pepper committee. In Philadelphia the Pepper committee was headed by W. W. Roper, Princeton foot ball couch. When Mr. Grundy took the stand he testified that he was a manu- | facturer of worsted varn and ha been in the business for 45 vear: He said that he had long been lin Republican politics and present he was a member Republican State committee. “What was your first contaet with the senatorial campaign this asked Senator Reed. “When W. L. Mellon Fisher for governor,” Te had previously Pepper.” Mr. Grundy said that he had been for Fisher for governor early in the vear. Fisher made his announce- ment in March, he said. It was then that the Republican citizens' cam- paign committee was formed in the interest of Mr. Fisher for governor. Favored Fisher First. Senator Pepper, he said, was not considered in on this at first. “You were interested in bringing out Fisher for governor?” asked Sen- ator Reed. “I was favorable to him.” “Senator Pepper had been openly a candidate some time before this, commented Senator Reed. “You took no part in the campaign for him be fore this coalition. As a matter of fact you were not favorable to Sen ator Pepper.” “I was not for Pepper,” admitted Mr. Grundy. “You really preferred Vare,” said senator Reed. “I wouldn't say that.” replied Mr. Grundy. “T was not for Pepper. | “You were not for Pinchot?" “Oh, no.” “As’ a matter of fact you were T(Continued on Page 2, Column 2) also ‘on a indorsed was the reply. ndorsed Senator !